New Build House: any rights?

Gother · 12 March 2017 at 9:11AM

Hello,

We are currently in the process of buying a new build house, which we exchanged for over six months ago (the developer was aiming to finish in October).

Whilst walking around the property a few weeks ago, we noticed a small change in one of the rooms. Whilst the change is small, I cannot honestly say that we would have decided to go ahead with the purchase, had the item in question not been a part of the original specification. Furthermore, the change was not mentioned to us and it was only because we spotted it whilst walking around the property that it was discussed. The developer has not made any gestures of good faith to apologise for this mistake, although the very friendly staff did go through the specification and confirm that nothing else has changed. This is not the first error, however the previous one (again that we identified) they did rectify.

I feel I know what the answer is here, as we are under the impression that you have more rights buying sweets than you do a new build property, however...

The question is, do we have any rights to "un-exchange" and have our deposit returned to us? Also, are there any rights to request any interest that the developer incurs, from our deposit?

Thank you.

Browntoa · 12 March 2017 at 9:12AM

What is the "small change" you are too vague for us to advise

AdrianC · 12 March 2017 at 9:35AM

This "small change" in "one of the rooms" is sufficient for you to want to pull out of the purchase? Or it's a handy excuse for some buyer's remorse?

Whilst the change is small, I cannot honestly say that we would have decided to go ahead with the purchase, had the item in question not been a part of the original specification

Is that deliberately convoluted?

Are you saying explicitly that, if that had been part of the spec, you would definitely not have bought the house?

That doesn't sound like what I'd call a "small" change.

What does the contract you exchanged say about changes between the designed and built specification?

Davesnave · 12 March 2017 at 9:48AM

Small changes do not make people pull out of new build purchases, but they may sometimes be used as tools for negotiation of upgrades etc.

If this is a small change, the answer is probably that you cannot withdraw without penalty and the chance of receiving interest on your deposit is almost nil.

I can't see the change or the contract from here; hence the vague reply

Gother · 12 March 2017 at 10:07AM

Appreciate the vagueness, however that was on purpose. I am trying to be very specific but also generic. If you purchase a new build property, which came with a bullet point list for "specifications", but something on that list is absent, do you have any rights? This could be to query a discount, refund, or something else. The "walk away from the purchase" is extreme, often if you have those rights it gives the buyer/purchaser the ability to put pressure on the developer, either to right a wrong or to offer something to counterbalance the missing item? Hopefully this makes sense?

In a similar scenario, had you agreed to buy a car and paid the deposit, but later noticed a lack of "included back seat interior lighting" (which was an item on the specifications list), would you have any cancellation rights here? The scenario is slightly different, as with a car you can at least view it before paying a deposit, unlike a new build property.

I'm hoping the other part of the question, regarding interest on a deposit, is fair to ask. Six months seems a reasonable amount of time to query this, but perhaps not?

davidmcn · 12 March 2017 at 10:12AM

Gother wrote: »

Appreciate the vagueness, however that was on purpose. I am trying to be very specific but also generic. If you purchase a new build property, which came with a bullet point list for "specifications", but something on that list is absent, do you have any rights?

As two other replies have already said (and hopefully as was explained to you by your solicitor) your rights are as stated in your contract. So read that. But there will certainly be some leeway for variations to the spec, and generally for normal residential contracts, quite a lot of leeway before they're obliged to involve you in approving them.

As for interest on the deposit - who is actually holding it? And given current interest rates, is it even worth considering?

AdrianC · 12 March 2017 at 10:15AM

Gother wrote: »

Appreciate the vagueness, however that was on purpose.

You can see why it makes any specific advice difficult, though.

If you purchase a new build property, which came with a bullet point list for "specifications", but something on that list is absent, do you have any rights?

What. Does. Your. Contract. Say?

In a similar scenario, had you agreed to buy a car and paid the deposit, but later noticed a lack of "included back seat interior lighting" (which was an item on the specifications list), would you have any cancellation rights here? The scenario is slightly different, as with a car you can at least view it before paying a deposit, unlike a new build property.

A very large percentage of cars are not purchased from stock, and specifications can change between order and delivery - and build/order/specification errors can occur. Again, the wording of the order contract is critical.

I'm hoping the other part of the question, regarding interest on a deposit, is fair to ask. Six months seems a reasonable amount of time to query this, but perhaps not?

<points back to contract>

But ask yourself what interest rate you think would be appropriate, bearing in mind bank base rate is 0.25%. How much deposit are we talking about? Six months interest on £1,000 at base rate is £1.25.

k3lvc · 12 March 2017 at 10:15AM

Given how (purposely) vague you're being you're only likely to get (purposely) vague answers on here as no-one can answer with any more detail

Tucked away in the T&C's is likely to be a 'E&OE' statement which allows a certain amount of leeway for them to claim an error on the spec

In terms of are you going to be able to back out and get interest on your deposit then unless there's something fairly fundamental (i.e. a bedroom missing) then you're probably having a :rotfl:

sparky130a · 12 March 2017 at 10:41AM

Gother wrote: »

Appreciate the vagueness, however that was on purpose. I am trying to be very specific but also generic.

To what end?

Well clearly you're not.

comeandgo · 12 March 2017 at 11:24AM

In our last new house, there was a radiator missing from the walk in wardrobe, the ensuite was a bit larger than the plans and our wardrobe was a bit smaller. In the brochure there was a lovely white car in the driveway. We did not get that either. Our builders had done so much more for us with extra electrical points extra dormer window that we accepted the very small changes with no complaints.

Freecall · 12 March 2017 at 12:22PM

Worse, I went on holiday once, the brochure showed a lovely blue sky with sunshine.

Rained all week.

Still thinking I should sue for misrepresentation.

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New Build House: any rights?

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